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Vanilla extract is made by percolating or macerating chopped vanilla beans with ethyl alcohol and water. The process is usually kept as cool as possible to keep flavor loss to a minimum. Vanilla extract continues to develop body and depth for about two years after production, at which time it will stabilize. They will keep indefinitely as long as they're stored in a cool dark place such as a pantry or cupboard that's away from the stove or bright sun. Refrigeration is not recommended.